The IRS today posted a set of questions and answers (referred to as “FAQs”) concerning issues relating to section 965 filing and reporting requirements for 2018 tax returns.
The FAQs—Questions and Answers about Tax Year 2018 Reporting and Payments Arising under Section 965—provide answers to questions related to tax year 2018 return filing and payment obligations arising under section 965—including reporting and payment obligations resulting from amounts included in income for the 2017 tax year.
A prior version of FAQs provide answers to questions regarding tax year 2017 return filing and payment obligations arising under section 965.
This report provides brief initial impressions and observations about the new FAQs.
FAQ 1 and FAQ 2 appear to be similar to those provided in the FAQs for 2017. Section 965 payments—whether for the full amount of the 2018 inclusion, the first installment payment for 2018 inclusions for which the taxpayer makes a section 965(h) election, or the second installment payment for 2017 inclusions for which the taxpayer made the section 965(h) election—are to be paid separately from “non-section 965” liabilities. Pursuant to the new FAQs, taxpayers will have additional options for the method of payment—now including EFTPS, wire transfers, or mail. Installment payments with respect to the 2018 inclusions (but not the second installment for 2017 inclusions) may also be made using electronic funds withdrawal. The IRS will issue payment vouchers six to eight weeks in advance of the due date, informing taxpayers of the amount of their second section 965 installment payment.
Next, the FAQs provide some “bad news” and some “good news.”
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Curt Wilson | +1 202 533 6460 | firstname.lastname@example.org
Larry Mack | +1 202 533 3381 | email@example.com
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